The weighted average RIM benefit-cost ratio was 0.37 NEM 2.0 increases rates for all customers, and increases bills for non-participating customers. The ratepayer impact measure (RIM) test measures effects on customer rates due to NEM 2.0-caused changes in utility costs.

PCT ratios were highest for residential customers. The weighted average participant benefit-cost ratio was 1.77 NEM 2.0 is cost-effective for participants. The participant cost test (PCT) measures benefits and costs of NEM 2.0 to its participants.The statewide weighted average TRC benefit-cost ratio was 0.84 at the aggregate utility level, NEM 2.0 is not cost-effective from the combined participant and utility perspective. The total resource cost (TRC) test measures the net costs of NEM 2.0 based on both the participants’ and the utilities’ costs.Overall, the results show that NEM 2.0 is cost-effective for NEM 2.0 participants but not for ratepayers. A benefit-cost ratio of 1.0 or higher indicates cost-effectiveness. The present value of these benefits and costs to different stakeholders was compared in the four tests described below. While 25 percent of California’s population lives in disadvantaged communities, less than 12 percent of residential NEM systems were installed in these communities.Ī model was developed to calculate NEM 2.0 systems’ acquisition costs and lifetime bill impacts. For example, ZIP codes with median household incomes below $100,000 installed around 60 percent of NEM systems in 2007, and around 70 percent in 2019. The proportion of solar PV installations in lower-income areas increased over time. This may be partially due to these systems being installed on larger and/or more energy intensive homes than the average California home.Īreas with high incomes, as well as areas with high home ownership rates, had higher percentages of NEM installations relative to California’s population. On average, NEM 1.0 residential customers consume significantly more energy, and NEM 2.0 customers consume slightly more energy, than average Californians. Residential customers with household income levels over $200,000 installed energy storage at a higher rate, 9 percent. Less than 6 percent of NEM systems interconnected during 2019 included energy storage. Almost 98 percent of NEM systems interconnected during 2019 were residential. About 60 percent of these were NEM 1.0 systems and about 40 percent were NEM 2.0 systems. This summary is adapted from the NEM 2.0 Evaluation, or “Lookback Study.”īy the end of 2019, California customers had interconnected more than 1 million NEM generators onto the three large electric investor-owned utility (IOU) systems.

Final draft 9 installer